Mortgage Offers

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Country of Purchase:
Type of Property:
Purchase Price:
(for a leaseback purchase
please enter the net price)
Deposit:
Interest rate %:
Term (years):
Guaranteed annual rental income (%):
(for leaseback property only)
Expected capital growth %:
Calculate
 
Deposit Required :
Total cash required to purchase
Monthly rental income :


Cash flow with a full repayment mortgage:

Monthly mortgage payment:1
Monthly Cash flow year one:
"Your monthly cash flow will improve over time as your rental income goes up"


Cash flow on an interest only mortgage:

Monthly mortgage payment :1
Monthly Cash flow year one:


Capital growth and cash return:

Capital growth expected in the first year:
Return on net cash invested from rental income % :
( in the first year )2
Return on net cash invested from capital growth % :
( in the first year )2
Total return on net cash invested % :
( in the first year )2


1 this figure is for mortgage payment only, it does not include any compulsory life insurance cover or buildings and contents insurance cover. In France for example, life insurance cover is mandatory. 
2 This is the total % return, from both capital gains and rental income, that you will make on the cash that you invested in your property.

 

General French Leaseback Mortgage questions answered:

Is the mortgage available on the net or gross purchase price of the property?

On a leaseback property - because you obtain a 19.6% VAT refund from the gross purchase price - sometimes it is possible just to finance the net price exclusive of the VAT.

Whether you obtain a mortgage on the net purchase price or the gross price depends on the actual Developer and the construction project itself. When purchasing a leaseback property from a large established developer - very often, you will only need to pay up to the net price, i.e 80.40%. The VAT of 19.60% will be paid for by the Developer and later reclaimed by them. In this instance you will therefore only need to secure a mortgage to fund the net price.

Example of a mortgage where the net price only is required to be mortgaged:

Gross Purchase price : 100,000 euros

VAT @ 19.6% : 16,388 euros

Net price : 83,612 euros

Mortgage application on 83,612 euros:

30% deposit (of net price): 25,083 euros

70% mortgage (of balance): 58,529 euros.

If a mortgage is required to fund the gross purchase price (less your deposit) then normally within a few months of completion you will receive a 19.6% VAT refund. The Developer will make this application for you.

During construction of the property - the bank will be asked to make stage payments by the Developer. What interest payments will I incur during construction?

During construction and the stage payment term - you only pay the interest on the released capital. Therefore once the bank have started releasing the funds you will be charged interest on that amount only. The interest charged is at the same rate as the loan itself. This system is in play until delivery of the property, at which point the normal mortgage procedure kicks in.

On an off-plan property purchase such as a leaseback offer - how does the Bank finance the stage payments?

You will need to pay the first 5% with personal funds. This is known as the reservation deposit. And is usually payable to a french notary who will hold the funds securely.

In the example of a 70% mortgage - with 30% personal funding: you would then send the remaining 25% balance to a current account opened with the lending bank. The remaining 70% is paid by the Bank in stage payments.

Can I get an Interest-Only mortgage?

Yes. For details please complete an Enquiry Form.

Up to what age can I apply for a french mortgage?

You can apply for a mortgage in France up to the age of 70. Over the age of 65 the criteria for mortgages can vary depending on the individual, so this can be talked through with the bank.

Paperwork required to obtain a french mortgage

Please find below a list of the necessary paperwork you will be asked for when applying for a french mortgage. It is best to have all of this information to hand when contacting the bank as it will save you much time and effort.

  1. Copy of the passports (Mr & Mrs if co-borrowing)
  2. Marriage certificate (if applicable)
  3. Last two tax notices, P60 or tax returns (last 3 in the case of borrowers who are self-employed)
  4. For self-employed professionals, accountant’s letter certifying:

  • Name of the company
  • Nature of activity
  • Turn-over for the last 3 years
  • Dividends or profits for the last 3 years
  • % of share in the company
  1. Your last three months Pay Slips
  2. Your last three months bank statements
  3. Copy of the Purchase contract (compromis de vente/ or reservation contract)
  4. A letter from your personal bank confirming that your current account works normally
  5. Tables showing repayments of current loans (Mortgages, Car loans etc)

Your home is at risk if you do not keep up repayments on a mortgage or other loan secured on it. Be sure you can afford the repayments before entering into any credit agreement. The figures quoted on this site are believed to be correct at the time of issue, and are subject to change without notice. Any quotation supplied is not an offer of a mortgage. The Sterling equivalent of your liability under a foreign currency mortgage may be increased by exchange rate movements.